Wells Fargo HAMP Success!

[William T]

We are very fortunate to have been approved for HAMP and very happy with our modification! I’m listing the basic facts about the modification here and I’ll be happy to answer questions.

I am self-employed and my business was running a loss to slight profit month to month. I used my wife’s income to qualify. She is not on loan but per HAMP guidelines, her income (but not expenses) were considered.

SUMMARY INFO
Bought House in 2004
Held by Fannie Mae

Mortgage Payment $2430

First missed payment: September (struggling every month but current through August)
Accepted into HAMP: October 20
Trial Period: December - February
Trial Payment: $2160

Financial Worksheet: $225 DEFICIT before mod (they never dug into this fortunately because it would be higher if ALL monthly expenses were included, not just the categories on the sheet)
Back End Debt Ratio: 95%
Front End Debt Ratio 58%

MODIFICATION DETAILS:
Approval Agreement received on March 19
Permanent Payment: $1779 (includes $37/mo for catching up escrow shortage) Monthly savings of $688

Terms:
2% Year 1-5
3% Year 6
4% Year 7
5% Year 8+

Term Length: 29 years, 4 months

We are lucky on the timing of this because our assessment just came in at 20% lower than last year. So that wasn’t taken into account getting to 31% and our payment will soon drop another $150 per month due to our lower property taxes.

CREDIT REPORTING:
Reported 30 days late for October (expected since I missed September & October payments). WF apparently froze reporting once I was approved for trial. No reporting whatsoever to Equifax or Experian since October. No notations yet regarding modified terms. I’ll update again once paperwork goes through and something shows up.


I didn’t discover this forum until I was already underway in my trial but since then I’ve referenced it frequently and I now want to help others who are still dealing with the process. I feel like a huge weight has been lifted from my shoulders but I won’t be able to sleep easy until I have the final signed docs in hand!

[Evan Bedard]

Congratulations William that is an excellent modification!!

I'm very glad to hear they actually reported your account how they are supposed to during the trial period. Many people here have been reported late each month and have had their credit destroyed going through the trial..

[mzmanzano]

Congrats, William. I am glad you got the loan and your credit is still good.

[EastCoaster]

Congrats.

Any explanation as to the perm payments lower than the trial payments ?

[justdeb]

congratulations on your mod!

[sandycane]

Question?Hope someone can answer this for me please.Received perm mods on friday 21st of may but papers drawn up on the 19th of may.The papers sent fed x from Wells Fargo.I have not sent them back yet because I have to have a payment effective for august 1st sent with it.The papers say sign send back within ten working days.Well all this takes a little bit of time to come up with 2300.05.I cannot get the cash till may 26th,so does this include weekends?because I am so stressed that they are not going to get there within 10 days and then they will cancel the perm mod agreement out.The fedx envelope is standard overnite.What would be the ten day?Thanks in advance for your response.Sorry william t thought you might have a answer.

[Noganav]

sandycane - do the docs specify that you send with a check? Or can you set up an automatic payment with wells? Usually you can make electronic scheduled payments over the phone for a certain date using your checking account numbers. If you have a different bank than wells it might even buy you a day or two even though it will still post as paid on the day you set up for. You might be able to set up for Saturday the 29th and it may not even hit your account till the 1st. but should post as paid 29th.

Be SURE to write down and have them e/mail the payment CONFIRMATION number to you. You will be given this over the phone when setting up the payment.

Congrats on getting the mod! way to go!

[sandycane]

Thank you noganav for replyng.The Docs dont say I had to send any money .The perm mod Docs say they will put june and july payment at the back end of the loan and my first payment will be due august 1st.I received a phone call from vanetta at home and she said I have to pay augusts payment noW and it has to be sent in with the perm mod Docs.I told her the papers dont say that and then she said that her name is vanetta and she is from audit and she put my loan together and if I dont send 2300.05 she will cancel the Docs when she receives them.This really ****s because i just got done paying 2427.44 this month already and I now have to borrow 2300.05 from my sister and brother in law and they are wiring me the money to my bank,but the money wont arrive till wednesday the 26th.I then will pay them back when I get paid.like I have all that kind of money sitting around or I wouldnt be behind 2 house payment...geeze...will they cancel my mod do you think if its not there before the 10 days...got docs in mail on the 21st of may and the letter says it was wrote uo on the 19th of may.I called wells fargo sat and they said I did not have to send money now from what they can see . vanetta said there not the one who put your loan together and she told me that if I dont send that check with docs your in house mod will be cancelled.Do you think if I sent them a check with the docs that would be okay instead of a certified check?or do you think they will send it backto me.

[Moe Bedard]

I beleive Wells Fargo bases trial payment on 38% of income in some cases at least.

The ten days are supose to be ten business days. I believe that if you have them picked up the day before they are due, and get there by 5pm the next day, you won't have a problem. I read somewhere that the actual date for acceptance of a HAMP mod is up until the date the mod actually starts.